Financial Secretary Paul Chan on Wednesday said he hopes the public understand that everyone has to play their part when it comes to the city's "belt-tightening", given the tough financial situation.

Chan said his budget puts forward a "reinforced version" of the fiscal consolidation programme, which includes a cumulative reduction of government recurrent expenditure by seven percent from now through 2027-28.

Speaking to the press, he said the government is moving in the right direction to achieve a fiscal balance.

"On the one hand, we try our best to diversify and grow our economy, but at the same time it is a belt-tightening budget, so everybody in the community would need to contribute to this effort," he said.

"We are trying to do the best we can in minimising the impact on our people, but at the same time, unavoidably, everyone has to chip in a little bit."

The finance chief said the government has no plans at present to introduce any new taxes, such as a goods and services tax.

"We have to pay regard to the following considerations. One is the competitiveness of Hong Kong, in terms of attracting investment and talent. Secondly, if we are to increase revenue, we try to minimise the impact on the average citizen," Chan said.